The average monthly buying repayment is £527 while renting is £683, giving an annual saving of £1,868, Halifax said
First-time buyers in Scotland are saving more than £1,800 a year compared with those in similar rental properties, new analysis suggests.
Halifax said the cost gap between being on the property ladder and renting has widened over the past year and revealed that in Scotland, the average monthly buying repayment is £527 while renting is £683, giving an annual saving of £1,868.
Its ‘buying versus renting’ review found that average monthly rental costs have increased by 10 per cent to £821 in the last 12 months, while the average monthly costs of being a first-time buyer homeowner have increased by just one per cent to £753 during the same period.
This adds up to an average difference of more than £800 over a year, however, most first-time buyers still need to find an average of £58,986 to put down as a deposit, the research found.
However, if they can find the deposit required to get on the property ladder, low interest rates have meant monthly mortgage payments have increased more slowly than rents, Halifax said.
Andrew Asaam, mortgages director, Halifax, said the average first home deposit has gone up by £11,000 since the start of the coronavirus pandemic.
He said the new UK Government-backed 5 per cent deposit mortgage guarantee scheme, set to launch in April, could be a “gamechanger” for those saving hard to buy a home and often paying rent at the same time.
He added: We have also committed to lending £10 billion in 2021 to help people buy their first home this year.
The review was based on the typical costs of buying or renting a three-bedroom property.
Average buying costs included mortgage payments, income lost by funding a deposit rather than saving, spending on household maintenance and repairs, and insurance costs.
‘One-off’ costs, such as valuation and legal fees were excluded.
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